Due to rapidly rising overhead costs and increases in raw material prices,Framarx Corporation was forced to raise the price of its waxed and coated paper by 35 percent.(The paper is used between frozen hamburger patties to keep the patties from freezing together. )Framarx is the leading manufacturer in this industry,and its competitors will follow suit.While the sales force for Framarx believes the price increase will result in a drop in sales,its marketing manager disagrees because the demand for the waxed and coated paper is more than likely which of the following?

Question

Quizplus · Accepted Answer

The demand for waxed and coated paper used between frozen hamburger patties is likely to be inelastic because it is a niche product with few substitutes and is essential for businesses in the food industry to ensure proper storage and transportation of their products. Therefore, customers are less likely to be sensitive to the price increase and more likely to continue purchasing the paper despite the price hike.

Due to Rapidly Rising Overhead Costs and Increases in Raw